##### Table of Contents





UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
 Form 10-K
  þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended
    December 31, 2007ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission file number 0-18561
  AMERICANWEST
    BANCORPORATION
 (Exact name of registrant as
    specified in its charter)
  Washington

91-1259511(State or other jurisdiction
    of incorporation)

(IRS Employer
    Identification No.)   41 West
    Riverside Avenue, Suite 400
    Spokane, Washington 99201 (Address
    of principal executive offices, including zip
    code)
  Registrants
    telephone number, including area code
    (509) 467-6993
  Securities registered pursuant to Section 12(b) of the
    Act:
  Title of Each Class

Name of Each Exchange on Which RegisteredNone   Securities
    registered pursuant to section 12(g) of the Act: Common
    Stock, no par value
  o þ
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. o
    Large accelerated
    filer o

Accelerated
    filer þ

Non-accelerated
    filer o

Smaller reporting
    company o(Do not check if a smaller reporting company)   Rule 12b-2 o þ
      DOCUMENTS
    INCORPORATED BY REFERENCE
  Documents of the Registrant

Form 10-K Reference LocationsPortions of the Proxy Statement for the 2008 Annual Meeting of
    Shareholders

PART III




---



##### 





ANNUAL
    REPORT ON
    FORM 10-K
    FOR THE FISCAL YEAR
    ENDED DECEMBER 31, 2007
  TABLE OF
    CONTENTS
   
 PagePART IItem 1.


Business


3Item 1A.


Risk Factors


10Item 1B.


Unresolved Staff Comments


12Item 2.


Properties


12Item 3.


Legal Proceedings


12Item 4.


Submission of Matters to a Vote of Security
    Holders


12PART IIItem 5.


Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities


13Item 6.


Selected Financial Data


15Item 7.


Managements Discussion and Analysis of
    Financial Condition and Results of Operation


16Item 7A.


Quantitative and Qualitative Disclosures About
    Market Risk


31Item 8.


Financial Statements and Supplementary Data


35Item 9.


Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure


75Item 9A.


Controls and Procedures


75Item 9B.


Other Information


76PART IIIItem 10.


Directors, Executive Officers and Corporate
    Governance


76Item 11.


Executive Compensation


76Item 12.


Security Ownership of Certain Beneficial Owners
    and Management and Related Stockholder Matters


76Item 13.


Certain Relationships, Related Transactions and
    Director Independence


77Item 14.


Principal Accountant Fees and Services


77PART IVItem 15.


Exhibits and Financial Statement Schedules


77Signatures


79EXHIBIT 21.1EXHIBIT 23.1EXHIBIT 31.(a)EXHIBIT 31.(b)EXHIBIT 32.(a)EXHIBIT 32.(b)   2




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##### Table of Contents



PART I  Forward
    Looking Statements.
  Certain matters discussed or incorporated by reference in
    this Annual Report on
    Form 10-K
    including, but not limited to, matters described in Item 7,
    Managements Discussion and Analysis of Financial
    Condition and Results of Operation, are forward-looking
    statements within the meaning of the Private Securities
    Litigation Reform Act of 1995 (PSLRA). Such forward looking
    statements include statements about the financial condition,
    adequacy of the allowance for credit losses, results of
    operations, future financial targets and earnings outlook of the
    Company. The forward-looking statements are subject to risks and
    uncertainties that could cause actual results to differ
    materially from those projected. Those factors include, but are
    not limited to, impact of the current national and regional
    economy on loan demand in the Companys market; loan
    delinquency rates, non-performing levels and charge-offs;
    changes in loan portfolio composition; the Companys
    ability to increase market share; the Companys ability to
    expand its markets through new financial centers and
    acquisitions; interest rate movements and the impact on net
    interest margins such movement may cause; changes in the
    demographic
    make-up of
    the Companys market; changes in the Companys
    products and services; the Companys ability to attract and
    retain qualified people; regulatory change; competition with
    other banks and financial institutions; and other factors. Words
    such as targets, expects,
    anticipates, believes, other similar
    expressions or future or conditional verbs such as
    will, may, should,
    would, and could are intended to
    identify such forward-looking statements. Readers should not
    place undue reliance on the forward-looking statements, which
    reflect managements view only as of the date hereto. The
    Company undertakes no obligation to publicly revise these
    forward-looking statements to reflect subsequent events or
    circumstances. This statement is included for the express
    purpose of protecting the Company under PSLRAs safe harbor
    provisions.
  Item 1.
    Business.  AmericanWest
    Bancorporation
      Available
    Information
    
    Annual Reports on
    Form 10-K;
    Quarterly Reports on
    Form 10-Q; and
    Current Reports on
    Form 8-K.   3




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##### Table of Contents



Recent
    Events
        Products
    and Services
          Commercial Real Estate Loans.
  Construction, Land Development and Other Land
    Loans.
   4




---



##### Table of Contents



Commercial and Industrial Loans.
  Agricultural Loans.
  Residential Real Estate Loans.
  Installment and Other Loans.
  Principal
    Market Area and Competition
  Tri-Cities
 5




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##### Table of Contents



Number










NumberIdaho


of




Washington


ofMarket


Market


Financial




Market


Market


FinancialCounty

Share


Rank


Centers


County

Share


Rank


CentersBenewah


38.0
%


1



2


Benton


5.6
%


7



3Bonner


1.4
%


6



1


Columbia


24.9
%


2



1Clearwater


45.6
%


1



1


Franklin


13.1
%


3



1Kootenai


1.5
%


12



2


Grant


8.6
%


6



2Latah


7.1
%


5



1


Lincoln


11.1
%


4



1Nez Perce


4.0
%


7



1


Spokane


4.4
%


7



9Shoshone


20.6
%


3



2


Stevens


29.2
%


1



3Total










10


Walla Walla


8.0
%


3



4Whitman


12.4
%


3



7Yakima


6.1
%


7



5Total










36   NumberUtah


ofMarket


Market


FinancialCounty

Share


Rank


CentersCarbon


17.6
%


3



1Juab


47.3
%


2



1Salt Lake


0.1
%


25



2Sanpete


29.4
%


2



4Utah


5.6
%


5



7Washington


1.7
%


9



1Wayne


100.0
%


1



1Total










17   Employees
    Supervision
    and Regulation
   6




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##### Table of Contents



Bank Holding Company Regulation.
      State Law Restrictions.
  Transactions with Affiliates.
  Bank Regulation.
  Premiums for Deposit Insurance. and/or
  Community Reinvestment Act.
 7




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##### Table of Contents



Insider Credit Transactions.
  Federal Deposit Insurance Corporation Improvement Act of 1991
    (FDICIA).
  Privacy.
  Dividends.
 8




---



##### Table of Contents



Capital Adequacy.
          Effects of Government Monetary Policy.
  Sarbanes-Oxley Controls and Procedures. Forms 10-K 10-Q)
 9




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##### Table of Contents



Anti-Terrorism Legislation.
  Item 1A.
    Risk
    Factors.  The following risk factors should not be considered to
    include all risks to the Company.
  The allowance for credit losses may not be adequate to cover
    actual losses.
  Changes in economic conditions, in particular an economic
    slowdown in the Companys market area, could harm
    business.
  A downturn in the real estate market is harming
    business.
  A substantial amount of the Banks real property
    collateral is located in Central and Eastern Washington and
    Utah.
 10




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##### Table of Contents



The greater Salt Lake City area and Utah economies each have
    grown rapidly during the past several years, and the failure of
    these economies to sustain such growth in the future could
    affect the Companys ability to grow.
  The Companys business is subject to interest rate risk,
    and variations in interest rates may harm financial
    performance.
  The Company faces strong competition from financial services
    companies and other companies that offer banking services, which
    could harm business. and/or
    The Company is subject to extensive regulation which could
    harm business.
 11




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##### Table of Contents



The Company is exposed to risk of environmental liabilities
    with respect to properties to which it takes
    title. clean-up
  The Company is dependent on key personnel and the loss of one
    or more of those key personnel may harm
    prospects.
  Item 1B.
    Unresolved
    Staff Comments.    Item 2.
    Properties.    Item 3.
    Legal
    Proceedings.    Item 4.
    Submission
    of Matters to a Vote of Security Holders.   12




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##### Table of Contents



PART II  Item 5.
    Market
    for Registrants Common Equity, Related Stockholder Matters
    and Issuer Purchases of Equity Securities.  mark-up,
  Cash DividendsDeclared perQuarter Ended

High


Low


ShareDecember 31, 2007

$
20.53


$
16.25


$
0.04September 30, 2007

$
20.96


$
14.84


$
0.04June 30, 2007

$
21.67


$
17.98


$
0.04March 31, 2007

$
24.57


$
19.89


$
0.03December 31, 2006

$
25.09


$
19.98


$
0.03September 30, 2006

$
23.33


$
20.18


$
0.03June 30, 2006

$
26.65


$
21.54


$
0.03March 31, 2006

$
26.86


$
23.30



           Number of SecuritiesRemaining Available forNumber of Securities





Future Issuance Underto be Issued Upon


Weighted Average


Equity CompensationExercise of Outstanding


Exercise Price of


Plans (ExcludingOptions, Warrants


Outstanding Options,


Securities Reflected inand Rights


Warrants and Rights


Column(a)Plan Category

(a)


(b)


(c)Equity compensation plans approved by security holders


425,394


$
18.14



243,278Equity compensation plans not approved by security holders










Total


425,394


$
18.14



243,278  13




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##### Table of Contents



Period EndingIndex

12/31/02


12/31/03


12/31/04


12/31/05


12/31/06


12/31/07AmericanWest Bancorporation


100.00



160.46



156.77



182.93



188.28



138.12NASDAQ Composite


100.00



150.01



162.89



165.13



180.85



198.60SNL Bank Index


100.00



134.90



151.17



153.23



179.24



139.28SNL Western Bank


100.00



135.46



153.94



160.27



180.84



151.05  14




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##### Table of Contents



Item 6.
    Selected
    Financial Data.    2007


2006


2005


2004


2003($ in thousands, except per share amounts)Statements of IncomeNet interest income

$
84,089


$
60,286


$
53,987


$
59,720


$
55,618Provision for loan losses


17,341



5,376



2,092



13,054



6,225Non-interest income


16,097



9,275



8,383



9,247



7,320Non-interest expense


70,548



52,198



41,408



42,738



35,219Income before provision for income tax


12,297



11,987



18,870



13,175



21,494Provision for income tax


3,759



4,357



4,998



3,670



7,508Net income

$
8,538


$
7,630


$
13,872


$
9,505


$
13,986Basic earnings per common share

$
0.54


$
0.68


$
1.33


$
0.93


$
1.39Diluted earnings per common share

$
0.54


$
0.67


$
1.31


$
0.91


$
1.34Basic weighted average shares outstanding


15,766,041



11,182,526



10,407,180



10,185,246



10,045,836Diluted weighted average shares oustanding


15,863,583



11,354,654



10,593,903



10,478,969



10,473,852Statements of ConditionSecurities

$
66,985


$
39,518


$
31,364


$
28,511


$
38,163Total assets


2,120,245



1,416,528



1,109,600



1,048,994



1,023,907Gross loans:Commercial real estate


580,627



529,699



427,368



325,637



326,437Construction, land development and other land


523,913



230,313



158,289



221,095



167,614Commercial and industrial


321,638



200,217



172,402



155,939



143,099Agricultural


157,196



155,433



126,044



140,896



143,780Residential real estate


153,043



86,371



59,226



52,784



60,788Installment and other


31,455



18,853



19,554



31,523



34,672Total gross loans


1,767,872



1,220,886



962,883



927,874



876,390Deposits


1,529,427



1,123,939



897,430



894,798



871,125Borrowings


285,902



126,686



81,847



40,933



47,781Stockholders equity

$
283,987


$
152,037


$
121,477


$
105,075


$
96,198Financial RatiosReturn on average assets


0.45
%


0.58
%


1.29
%


0.88
%


1.47
%Return on average equity


3.36
%


5.33
%


12.34
%


9.37
%


15.87
%Net interest margin(1)


5.09
%


5.06
%


5.47
%


6.04
%


6.36
%Non-interest income to average assets


0.85
%


0.71
%


0.78
%


0.85
%


0.77
%Non-interest expense to average assets


3.74
%


3.99
%


3.87
%


3.94
%


3.71
%Efficiency ratio


66.9
%


73.6
%


66.0
%


61.6
%


55.6
%Cash dividends declared per share

$
0.15


$
0.09


$



$



$
Cash dividend payout ratio


27.8
%


13.2
%










Book value per share

$
16.51


$
13.35


$
11.58


$
10.23


$
10.45Tangible book value per share

$
8.09


$
9.79


$
10.20


$
8.80


$
8.83Average equity to average assets ratio


13.48
%


10.95
%


10.50
%


9.36
%


9.28
%Ending tangible equity to tangible assets


7.05
%


8.10
%


9.77
%


8.74
%


8.05
%Non-performing loans to gross loans(2)


2.21
%


0.94
%


1.50
%


2.62
%


1.43
%Allowance for credit losses to gross loans(3)


1.51
%


1.31
%


1.49
%


1.99
%


1.42
%     (1)
    
    Tax-exempt securities included using a tax equivalent basis and
    an assumed tax rate of 34%.(2)
    
    Ratio shown net of government guarantees.(3)
    
    Includes the allowance for loan losses and reserve for unfunded
    commitments. 15




---



##### Table of Contents



Item 7.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations.  The following discussion should be read together with the
    Companys consolidated financial statements, related notes
    and supplementary data of the Company and its subsidiaries,
    which are included under Item 8. The following discussion
    contains forward-looking statements that reflect plans,
    estimates and beliefs. The actual results of the Company could
    differ materially from those discussed in the forward-looking
    statements.
  Critical
    Accounting Policies
    Executive
    Overview
  Results
    of Operations
  % Change2007


2006


2005


2007


2006($ in thousands, except per share)Interest income

$
134,292


$
93,853


$
72,320



43
%


30
%Interest expense


50,203



33,567



18,333



50
%


83
%Net interest income


84,089



60,286



53,987



39
%


12
%Provision for loan losses


17,341



5,376



2,092



223
%


157
%Net interest income after provision for loan losses


66,748



54,910



51,895



22
%


6
%Non-interest income


16,097



9,275



8,383



74
%


11
%Non-interest expense


70,548



52,198



41,408



35
%


26
%Income before provision for income tax


12,297



11,987



18,870



3
%


(36
)%Provision for income tax


3,759



4,357



4,998



(14
)%


(13
)%Net income

$
8,538


$
7,630


$
13,872



12
%


(45
)%Basic earnings per common share

$
0.54


$
0.68


$
1.33Diluted earnings per common share

$
0.54


$
0.67


$
1.31         
    Merger with Far West Bancorporation (FWBC) on April 1, 2007
    which added $350.9 million of gross loans and
    $383.4 million of deposits.
    Organic loan growth of $196.1 million, or 16%.
    Provision for loan losses of $17.3 million, principally
    related to an increase in non-performing loans and an overall
    decline in the residential construction and development markets. 16




---



##### Table of Contents




    Net interest margin increased 3 basis points over the prior
    year related mainly to the acquired loans and deposits from
    FWBC. The margin compressed during the second half of the year
    due mainly to the declines in the market interest rates in the
    third and fourth quarters and ongoing competitive market
    pressures to retain deposits.
    Non-interest income increase of $6.8 million, or 74%,
    related mainly to increases in fees and service charges on
    deposits of $3.7 million, or 66%, increases in fees on
    mortgage loan sales of $1.5 million, or 85%, and increases
    in other non-interest income of $1.7 million, or 83%.
    Non-interest expense increase of $18.4 million, or 35%,
    mainly related to:  
    The increase in salaries and employee benefits of
    $10.9 million, or 36%, principally due to additional full
    time equivalent employees from the new financial centers
    acquired in the merger with FWBC along with additional staffing
    related to mortgage lending.
    Occupancy and equipment costs increased $4.2 million or 52%
    due to new facilities acquired in the merger with FWBC and new
    financial centers opened during the year.
    Amortization of intangibles increased $2.5 million due
    mainly to the FWBC merger.  
    The Company paid cash dividends of $0.15 per share.    
    Merger with Columbia Trust Bancorp (CTB) on March 15,
    2006 which added $145.5 million of gross loans and
    $175.9 million of deposits.
    12% organic loan growth and 6% organic deposit growth.
    Non-interest expense increased $10.6 million, or 26%,
    mainly due to the following items:  
    Salary and employee benefits expense increased
    $6.8 million, or 29%, related to an increase in full time
    equivalent employees.
    Other increases related mainly to occupancy, equipment and other
    are due to growth initiatives.  
    Opening of five new financial centers and a loan production
    office.
    Provision for loan losses of $5.4 million included the
    impact of charge-offs related to one borrower of
    $4.8 million during the year.
    The net interest margin compressed 41 basis points due
    primarily to a higher cost of funds.
    Non-interest income increased $0.9 million, or 11%, mainly
    due to increases in fees and service charges on deposits of
    $0.6 million and fees on mortgage loan sales of
    $0.4 million.
    The Company paid cash dividends of $0.09 per share.  Net Interest Income.
   17




---



##### Table of Contents



Year Ended December 31,2007


2006


2005Average








Average








AverageBalance


Interest


%


Balance


Interest


%


Balance


Interest


%($ in thousands)AssetsLoans(1)

$
1,585,078


$
130,980



8.26
%

$
1,145,558


$
91,743



8.01
%

$
952,151


$
70,898



7.45
%Taxable securities


44,195



2,240



5.07
%


31,069



1,504



4.84
%


17,805



820



4.61
%Nontaxable securities(2)


17,127



1,047



6.11
%


9,919



601



6.06
%


8,536



538



6.30
%Federal Home Loan Bank stock


7,367



45



0.61
%


6,122



6



0.10
%


5,392



22



0.41
%Overnight deposits with other banks


5,970



336



5.63
%


3,945



203



5.15
%


5,533



224



4.05
%Total interest earning assets


1,659,737



134,648



8.11
%


1,196,613



94,057



7.86
%


989,417



72,502



7.33
%Noninterest earning assets


226,912











110,739











81,872Total assets

$
1,886,649










$
1,307,352










$
1,071,289LiabilitiesInterest bearing demand deposits

$
130,553


$
996



0.76
%

$
88,936


$
650



0.73
%

$
67,700


$
278



0.41
%Savings and MMDA deposits


500,367



15,227



3.04
%


351,697



10,246



2.91
%


343,574



6,858



2.00
%Time deposits


493,323



24,079



4.88
%


376,340



15,947



4.24
%


283,639



8,087



2.85
%Total interest bearing deposits


1,124,243



40,302



3.58
%


816,973



26,843



3.29
%


694,913



15,223



2.19
%Overnight borrowings


34,422



1,856



5.39
%


39,056



2,019



5.17
%


30,727



970



3.16
%Junior subordinated debt


36,720



2,754



7.50
%


18,349



1,554



8.47
%


10,310



758



7.35
%Other borrowings(3)


98,819



5,291



5.35
%


61,585



3,151



5.12
%


34,427



1,382



4.01
%Total interest bearing liabilities


1,294,204



50,203



3.88
%


935,963



33,567



3.59
%


770,377



18,333



2.38
%Noninterest bearing demand deposits


318,878











218,230











179,115Other noninterest bearing liabilities


19,301











9,955











9,341Total liabilities


1,632,383











1,164,148











958,833Stockholders Equity


254,266











143,204











112,456Total liabilities and stockholders equity

$
1,886,649










$
1,307,352










$
1,071,289Net interest income and spread





$
84,445



4.23
%





$
60,490



4.27
%





$
54,169



4.95
%Net interest margin to averageearning assets










5.09
%










5.06
%










5.47
%     (1)
    
    Includes loans held for sale and non-performing loans in average
    loans. Interest income includes loan fee income.(2)
    
    Tax-exempt securities income has been presented using a tax
    equivalent basis and an assumed tax rate of 34%.(3)
    
    Includes junior subordinated debt. 18




---



##### Table of Contents



2007 vs 2006


2006 vs 2005Increase (Decrease) in Net Interest Income Due to Changes
    inVolume


Rate


Total


Volume


Rate


Total($ in thousands)Interest earning assetsLoans(1)

$
35,199


$
4,038


$
39,237


$
14,409


$
6,436


$
20,845Securities(2)


1,044



138



1,182



756



(9
)


747Overnight deposits with other banks and FHLB stock


68



104



172



(19
)


(18
)


(37
)Total interest earning assets

$
36,311


$
4,280


$
40,591


$
15,146


$
6,409


$
21,555Interest bearing liabilitiesInterest bearing demand deposits

$
304


$
42


$
346


$
87


$
285


$
372Savings and MMDA deposits


4,331



650



4,981



162



3,226



3,388Time deposits


4,957



3,175



8,132



2,642



5,218



7,860Total interest bearing deposits


9,592



3,867



13,459



2,891



8,729



11,620Overnight borrowings


(240
)


77



(163
)


263



786



1,049Junior subordinated debt


1,556



(356
)


1,200



591



205



796Other borrowings(3)


1,905



235



2,140



1,091



678



1,769Total interest bearing liabilities


12,813



3,823



16,636



4,836



10,398



15,234Total increase (decrease) in net interest income

$
23,498


$
457


$
23,955


$
10,310


$
(3,989
)

$
6,321     (1)
    
    Includes loans held for sale and non-performing loans in average
    loans. Interest income includes loan fee income.(2)
    
    Tax-exempt securities income has been presented using a tax
    equivalent basis and an assumed tax rate of 34%.(3)
    
    Includes junior subordinated debt.    Provision for Loan Losses.
   19




---



##### Table of Contents



Non-interest Income.
  2007 Compared to 2006


2006 Compared to 20052007


2006


Dollar Change


Percent Change


2006


2005


Dollar Change


Percent Change($ in thousands)Fees and service charges on deposits

$
9,199


$
5,526


$
3,673



66
%

$
5,526


$
4,942


$
584



12
%Fees on mortgage loan sales


3,175



1,713



1,462



85
%


1,713



1,293



420



32
%Bankcard revenue


1,110



381



729



191
%


381



79



302



382
%Bank owned life insurance


1,007



533



474



89
%


533



813



(280
)


(34
)%Asset sale income


507



433



74



17
%


433



585



(152
)


(26
)%Other


1,099



689



410



60
%


689



671



18



3
%Total

$
16,097


$
9,275


$
6,822



74
%

$
9,275


$
8,383


$
892



11
%    20




---



##### Table of Contents



Non-interest Expense.
  2007 Compared to 2006


2006 Compared to 20052007


2006


Dollar Change


Percent Change


2006


2005


Dollar Change


Percent Change($ in thousands)Salaries and employee benefits

$
41,212


$
30,284


$
10,928



36
%

$
30,284


$
23,439


$
6,845



29
%Occupancy and equipment


12,316



8,110



4,206



52
%


8,110



6,191



1,919



31
%Amortization of intangible assets


3,480



982



2,498



254
%


982



251



731



291
%Bankcard and Debit card


1,318



511



807



158
%


511



383



128



33
%State business and occupancy tax


1,290



1,238



52



4
%


1,238



960



278



29
%Supplies


1,041



1,118



(77
)


(7
)%


1,118



883



235



27
%Advertising


972



1,081



(109
)


(10
)%


1,081



669



412



62
%FRB and correspondent bank fees


572



621



(49
)


(8
)%


621



557



64



11
%Loan expenses


597



762



(165
)


(22
)%


762



513



249



49
%Foreclosed asset expense


322



750



(428
)


(57
)%


750



669



81



12
%Provision for unused commitments


236



415



(179
)


(43
)%


415



273



142



52
%Other


7,192



6,326



866



14
%


6,326



6,620



(294
)


(4
)%Total

$
70,548


$
52,198


$
18,350



35
%

$
52,198


$
41,408


$
10,790



26
%       Provision for Income Tax.
   21




---



##### Table of Contents



Balance
    Sheet Management
  Lending and Credit Risk Management.
        Loan Concentrations.
  Loans Over One YearMaturity


by Rate SensitivityLess than 1 Year


1-5 Years


Thereafter


Total


Fixed Rate


Variable Rate($ in thousands)Commercial, Financial and Agriculture

$
244,428


$
144,602


$
89,803


$
478,833


$
102,606


$
131,799Construction  Real Estate


361,936



56,477







418,413



3,882



52,595Total

$
606,364


$
201,079


$
89,803


$
897,246


$
106,488


$
184,394     2007


% of Total


2006


% of Total($ in thousands)Commercial real estate

$
580,627



33
%

$
529,699



43
%Construction, land development and other land


523,913



30
%


230,313



19
%Commercial and industrial


321,638



18
%


200,217



16
%Agricultural


157,196



9
%


155,433



13
%Residential Real Estate


153,043



8
%


86,371



7
%Installment and other


31,455



2
%


18,853



2
%Total loans

$
1,767,872



100
%

$
1,220,886



100
%    22




---



##### Table of Contents



2007($ in thousands)Residential land development

$
201,631Commercial construction


128,129Builder spec


50,395Residential consumer


41,231Raw land


33,158Builder custom


20,383Other


48,986Total construction, land development and other land

$
523,913     Asset Quality and Non-performing Assets.
  As December 31,2007


2006


2005


2004


2003($ in thousands)Non-performing loans:Non-accrual loans

$
39,098


$
11,500


$
14,452


$
24,222


$
12,485Accruing loans 90 days or more past due










31



53



43Total non-performing loans


39,098



11,500



14,483



24,275



12,528Other real estate owned and other repossessed assets


1,230



644



2,221



4,201



7,408Total non-performing assets

$
40,328


$
12,144


$
16,704


$
28,476


$
19,936Allowance for loan losses

$
25,258


$
15,136


$
13,895


$
18,282


$
12,252Reserve for unfunded commitments


1,374



881



466



193



201Allowance for credit losses

$
26,632


$
16,017


$
14,361


$
18,475


$
12,453Government guarantee portion of loans excluded fromnon-performing loans

$
992


$
3,978


$
1,225


$
1,276


$
334Ratio of total non-performing assets to total assets


1.90
%


0.86
%


1.51
%


2.71
%


1.95
%Ratio of total non-performing loans to total loans


2.21
%


0.94
%


1.50
%


2.62
%


1.43
%Ratio of allowance for credit losses to total non-performing
    loans


68.12
%


139.28
%


99.16
%


76.11
%


99.40
%    23




---



##### Table of Contents




    During the fourth quarter of 2007, one loan extended in
    connection with a residential development in the Boise, Idaho
    metropolitan area was placed on non-accrual status and a
    $2.0 million charge-off was recorded. The remaining
    carrying value of $8.5 million is supported by a wholesale
    based appraisal, less selling costs. The project is being
    marketed to investors and the Bank has started foreclosure
    action.
    During the fourth quarter of 2007, a relationship with a
    Utah-based residential builder totaling $5.7 million was
    placed on non-accrual status. The carrying value is supported
    based on a discounted value of the underlying collateral.
    During the fourth quarter of 2007, a relationship with a land
    acquisition and development borrower in the Provo, Utah market
    with a carrying value of $4.9 million was placed on
    non-accrual status. The carrying value of the loan is supported
    based on a discounted value of the underlying collateral.
    As of December 31, 2007, a wood products manufacturing loan
    relationship with a carrying value of $3.8 million was
    included in non-accrual loans. It has been determined that the
    companys operations will be wound down and the existing
    inventory and accounts receivable liquidated. The carrying value
    is supported by receivables, inventory and real estate unrelated
    to the business operations. During the year ended
    December 31, 2007, there were $6.6 million of
    charge-offs related to this relationship.
    During the fourth quarter of 2007 a residential development loan
    in the St. George, Utah market with a carrying value of
    $2.9 million was placed on non-accrual status. The carrying
    value is supported based on a discounted value of the underlying
    collateral. The Bank is anticipating this loan be paid off in
    the first quarter of 2008 to avoid foreclosure.
    During the year ended December 31, 2007, the Company sold
    $5.0 million of non-performing loans to third parties and
    recognized an aggregate charge-off of $1.3 million.    Analysis
    of Allowance for Loan Losses
    Selected Loan Loss
    Allowance Methodology and Documentation
 24




---



##### Table of Contents



Issues Accounting by Creditors for Impairment of a Loan Accounting by Creditors for
    Impairment of a Loan  Income Recognition and
    Disclosures
  Interagency Policy Statement
   25




---



##### Table of Contents



2007


2006


2005


2004


2003($ in thousands)Balance of allowance for loan losses at beginning of period

$
15,136


$
13,895


$
18,282


$
12,252


$
10,170Charge-offsCommercial real estate


1,383



218



3,394



190



960Construction, land development, and other land


2,475



54



614



254



687Commercial and industrial


9,449



6,015



1,023



6,578



1,452Agricultural


211



363



908







177Residential real estate


649



43



160



248



554Installment and other


1,103



328



826



852



694Total charge-offs


15,270



7,021



6,925



8,122



4,524RecoveriesCommercial real estate


10



93



87



28



1Construction, land development, and other land










17



453



Commercial and industrial


245



171



88



515



71Agricultural






341



10







90Residential real estate


28



2



72



16



14Installment and other


239



211



172



86



205Total recoveries


522



818



446



1,098



381Net charge-offs


14,748



6,203



6,479



7,024



4,143Provision for loan losses


17,341



5,376



2,092



13,054



6,225Allowance acquired through acquisition


7,529



2,068











Balance of allowance for loan losses at end of period

$
25,258


$
15,136


$
13,895


$
18,282


$
12,252Ratio of net charge-offs to average loans


0.93
%


0.54
%


0.68
%


0.77
%


0.50
%Ratio of provision for loan losses to average loans


1.09
%


0.47
%


0.22
%


1.43
%


0.76
%Recoveries as a percentage of charge-offs


3.42
%


11.65
%


6.44
%


13.52
%


8.42
%Average loans outstanding during the period

$
1,585,078


$
1,145,558


$
952,151


$
913,844


$
821,407  26




---



##### Table of Contents



December 31,2007


2006


2005


2004


2003Loans to





Loans to





Loans to





Loans to





Loans toAmount of


Gross


Amount of


Gross


Amount of


Gross


Amount of


Gross


Amount of


GrossAllowance


Loans


Allowance


Loans


Allowance


Loans


Allowance


Loans


Allowance


Loans($ in thousands)Commercial real estate

$
6,281



33
%

$
5,251



43
%

$
4,769



44
%

$
6,399



35
%

$
4,564



37
%Construction, land developmentand other land


9,611



30
%


2,197



19
%


1,719



17
%


4,388



24
%


2,343



19
%Commercial and industrial


4,444



18
%


2,922



16
%


3,403



18
%


3,108



17
%


2,001



16
%Agricultural


2,672



9
%


3,513



13
%


2,933



13
%


2,742



15
%


2,010



17
%Residential real estate


1,261



8
%


890



7
%


729



6
%


1,097



6
%


850



7
%Installment and other


989



2
%


363



2
%


342



2
%


548



3
%


484



4
%Total

$
25,258



100
%

$
15,136



100
%

$
13,895



100
%

$
18,282



100
%

$
12,252



100
%   Investments
    % of





% of





% of2007


Total


2006


Total


2005


Total($ in thousands)Obligations of federal government agencies

$
17,446



26
%

$
11,857



30
%

$
12,769



41
%Obligations of states, municipalities andpolitical subdivisions


19,585



29
%


9,062



23
%


7,625



24
%Mortgage-backed securities


26,360



40
%


14,739



37
%


6,815



22
%Corporate Securities


1,487



2
%


1,481



4
%


2,866



9
%Other securities


2,107



3
%


2,379



6
%


1,289



4
%Total securities

$
66,985



100
%

$
39,518



100
%

$
31,364



100
%   sub-prime
 27




---



##### Table of Contents



Yield


Amount($ in thousands)U.S. Treasury and other U.S. government agencies:1 year or less


4.54
%

$
11,325Over 1 through 5 years


5.19
%


4,700Over 5 through 10 years


4.70
%


1,421Total


4.73
%

$
17,446States and political subdivisions:1 year or less


4.05
%

$
1,781Over 1 through 5 years


4.43
%


6,293Over 5 through 10 years


4.18
%


3,441Over 10 Years


4.09
%


8,070Total


4.21
%

$
19,585Other securities, including mortgage-backed and corporate:1 year or less


5.56
%

$
1,523Over 1 through 5 years


5.23
%


3,671Over 5 through 10 years


5.12
%


5,686Over 10 years


4.79
%


19,074Total


4.95
%

$
29,954Total investment securities:1 year or less


4.59
%

$
14,629Over 1 through 5 years


4.87
%


14,664Over 5 through 10 years


4.76
%


10,548Over 10 years


4.58
%


27,144Total


4.68
%

$
66,985     Goodwill
    and Intangible Assets
    Deposits
   28




---



##### Table of Contents



2007


2006


2005Average


Interest


Average


Interest


Average


InterestBalance


Rate


Balance


Rate


Balance


Rate($ in thousands)Interest bearing demand deposits

$
130,553



0.76
%

$
88,936



0.73
%

$
67,700



0.41
%Savings and MMDA deposits


500,367



3.04
%


351,697



2.91
%


343,574



2.00
%Time deposits


493,323



4.88
%


376,340



4.24
%


283,639



2.85
%Non-interest bearing demand deposits


318,878







218,230







179,115



Total

$
1,443,121



2.79
%

$
1,035,203



2.59
%

$
874,028



1.74
%     2007


2006


2005($ in thousands)Less than three months

$
104,825


$
79,066


$
39,168Three months to six months


66,401



47,338



53,419Six months to one year


95,548



66,426



30,604Over one year


21,430



24,678



25,910Total

$
288,204


$
217,508


$
149,101     Borrowings
    December 31,2007

2006

2005($ in thousands)Overnight advances outstanding at year-end

$
104,871


$
12,850


$
531Maximum amount of outstanding advances at any month-end

$
104,871


$
94,583


$
64,839     Liquidity
    and Capital Resources
   29




---



##### Table of Contents



Effects of Inflation and Changing Prices.
 30




---



##### Table of Contents



Contractual
    Obligations
    Less Than


1-3


3-51 Year


Years


Years


Thereafter


Total($ in thousands)FHLB advances

$
174,384


$
33,068


$
600


$



$
208,052Capital lease obligations


79



160











239Junior subordinated debentures














40,619



40,619Obligations reflected onConsolidated Statements of Condition

$
174,463


$
33,228


$
600


$
40,619


$
248,910Operating lease obligations

$
3,304


$
6,193


$
6,052


$
28,367


$
43,916Salary continuation agreements


440



979



1,246



10,975



13,640Other contractual obligations


2,121



3,002



222



95



5,440Obligations not reflected on Consolidated Statements of Condition

$
5,865


$
10,174


$
7,520


$
39,437


$
62,996Total

$
180,328


$
43,402


$
8,120


$
80,056


$
311,906     Off-balance
    Sheet Arrangements
    Less Than


1-3


3-51 Year


Years


Years


Thereafter


Total($ in thousands)Commitments to extend credit

$
379,054


$
72,995


$
9,894


$
71,713


$
533,656Standby letters of credit and financial guarantees written


36,158



10,424



4,782







51,364Total

$
415,212


$
83,419


$
14,676


$
71,713


$
585,020   Recent
    Accounting Pronouncements
    Item 7A.
    Quantitative
    and Qualitative Disclosures about Market Risk.  Market
    Risk
     31




---



##### Table of Contents



Net
    Interest Income Sensitivity
      Percentage Changein Net InterestIncome over12 MonthsRate Scenario

2007


2006Rates increase 200 basis points


4.02
%


4.91
%Rates increase 100 basis points


2.08
%


2.40
%Rates decrease 100 basis points


(2.03
)%


(3.12
)%Rates decrease 200 basis points


(4.18
)%


(6.18
)%      32




---



##### Table of Contents



Economic
    Value of Equity
        PercentageChange inRate Scenario

EVERates increase 200 basis points


4.27
%Rates increase 100 basis points


2.52
%Rates decrease 100 basis points


(0.67
)%Rates decrease 200 basis points


(0.97
)%    33




---



##### Table of Contents



Interest
    Rate Sensitivity Gap
    Repricing Interval1-3


4-12


2-5


Over 5


Non RateMonths


Months


Years


Years


Sensitive


Total($ in thousands)AssetsOvernight interest bearing deposits with other banks

$
498


$



$



$



$



$
498Securities


10,554



14,340



22,047



19,847



197



66,985Loans and loans held for sale, gross


982,598



194,292



473,598



88,746



39,743



1,778,977Non-interest earning assets


















273,785



273,785Total Assets

$
993,650


$
208,632


$
495,645


$
108,593


$
313,725


$
2,120,245Liabilities and Shareholders EquityInterest bearing demand deposits

$
147,826


$



$



$



$



$
147,826Savings and MMDA deposits


530,488



















530,488Time deposits


172,476



281,739



53,899



298







508,412FHLB advances


128,500



46,000



33,552











208,052Other borrowings and capital lease obligations


36,372







239











36,611Junior subordinated debt


13,403







27,836











41,239Non-interest bearing liabilities and stockholders equity


















647,617



647,617Total Liabilities and Stockholders Equity

$
1,029,065


$
327,739


$
115,526


$
298


$
647,617


$
2,120,245Interest Rate Repricing Gap


(35,415
)


(119,107
)


380,119



108,295



(333,892
)Cumulative Repricing Gap


(35,415
)


(154,522
)


225,597



333,892



Cumulative Gap as a% of Total Earning Assets


(1.9
)%


(8.4
)%


12.2
%


18.1
%  34




---



##### Table of Contents



Item 8.
    Financial
    Statements and Supplementary Data.  Report of
    Independent Registered Public Accounting Firm
               
    35




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  CONSOLIDATED
    STATEMENTS OF FINANCIAL CONDITION
 DECEMBER
    31, 2007 AND 2006
  2007


2006($ in thousands)ASSETSCash and due from banks

$
46,591


$
45,866Overnight interest bearing deposits with other banks


498



9,863Cash and cash equivalents


47,089



55,729Securities, available-for-sale at fair value


66,985



39,518Loans, net of allowance for loan losses of $25,258 and $15,136,
    respectively


1,738,838



1,204,519Loans, held for sale


11,105



2,913Accrued interest receivable


11,766



8,311FHLB stock


7,801



6,319Premises and equipment, net


47,426



30,484Foreclosed real estate and other foreclosed assets


1,230



644Bank owned life insurance


29,104



19,716Goodwill


127,852



33,073Intangible assets


16,942



7,506Other assets


14,107



7,796TOTAL ASSETS

$
2,120,245


$
1,416,528LIABILITIESNon-interest bearing demand deposits

$
342,701


$
236,375Interest bearing deposits:NOW, savings account and money market accounts


678,314



476,852Time, $100,000 and over


288,204



217,508Other time


220,208



193,204TOTAL DEPOSITS


1,529,427



1,123,939Federal Home Loan Bank advances


208,052



105,759Other borrowings and capital lease obligations


36,611



307Junior subordinated debt


41,239



20,620Accrued interest payable


5,339



4,270Other liabilities


15,590



9,596TOTAL LIABILITIES


1,836,258



1,264,491STOCKHOLDERS EQUITYCommon stock, no par, shares authorized 50 million;
    17,270,763 issued and 17,199,992 oustanding at December 31,
    2007; 11,467,648 issued and 11,388,315 outstanding at
    December 31, 2006


253,150



127,396Retained earnings


30,709



24,576Accumulated other comprehensive income, net of tax


128



65TOTAL STOCKHOLDERS EQUITY


283,987



152,037TOTAL LIABILITIES AND STOCKHOLDERS EQUITY

$
2,120,245


$
1,416,528    36




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  CONSOLIDATED
    STATEMENTS OF INCOME
 YEARS
    ENDED DECEMBER 31, 2007, 2006 AND 2005
  2007


2006


2005($ in thousands, except per share amounts)Interest IncomeInterest and fees on loans

$
130,980


$
91,743


$
70,898Interest on securities


2,931



1,901



1,176Other interest income


381



209



246Total Interest Income


134,292



93,853



72,320Interest ExpenseInterest on deposits


40,302



26,843



15,223Interest on borrowings


9,901



6,724



3,110Total Interest Expense


50,203



33,567



18,333Net Interest Income


84,089



60,286



53,987Provision for loan losses


17,341



5,376



2,092Net Interest Income After Provision for Loan Losses


66,748



54,910



51,895Non-interest IncomeFees and service charges on deposits


9,199



5,526



4,942Fees on mortgage loan sales


3,175



1,713



1,293Other


3,723



2,036



2,148Total Non-interest Income


16,097



9,275



8,383Non-interest ExpenseSalaries and employee benefits


41,212



30,284



23,439Occupancy expense, net


5,710



4,167



3,534Equipment expense


6,606



3,943



2,657State business and occupation tax


1,290



1,238



960Amortization of intangible assets


3,480



982



251Foreclosed real estate and other foreclosed assets expense


322



750



669Other


11,928



10,834



9,898Total Non-interest Expense


70,548



52,198



41,408Income Before Provision for Income Tax


12,297



11,987



18,870Provision for Income Tax


3,759



4,357



4,998Net Income

$
8,538


$
7,630


$
13,872Basic earnings per common share

$
0.54


$
0.68


$
1.33Diluted earnings per common share

$
0.54


$
0.67


$
1.31Basic weighted average shares outstanding


15,766,041



11,182,526



10,407,180Diluted weighted average shares outstanding


15,863,583



11,354,654



10,593,903    37




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
    CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY AND 
    COMPREHENSIVE INCOME 
    YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005
  AccumulatedUnearned


OtherCommon Stock


Retained


Employee


Comprehensive





ComprehensiveShares


Amount


Earnings


Compensation


Income (Loss)


Total


Income($ in thousands)Balances, December 31, 2004


10,269,454


$
100,812


$
4,057


$



$
206


$
105,075


$
9,238Issuances of common stock under equity incentive plans, net of
    tax benefits


221,453


$
2,660














$
2,660Net income










13,872











13,872



13,872Restricted stock awards activity (Note 15)


56,500



1,195







(1,195
)






Compensatory restricted stock awards














100







100Compensatory stock options issued










38











38Net change in unrealized loss on
    available-for-sale
    securities, net of $143 tax benefit


















(268
)


(268
)


(268
)Balances, December 31, 2005


10,547,407


$
104,667


$
17,967


$
(1,095
)

$
(62
)

$
121,477


$
13,604Issuances of common stock under equity incentive plans, net of
    tax benefits


176,662



2,557















2,557Net Income










7,630











7,630



7,630Compensatory restricted stock awards






82















82Restricted stock awards activity (Note 15)


22,833



(1,095
)






1,095







Stock issued in connection with acquisition


720,746



20,592















20,592Cash Dividends ($0.09 per share)










(1,021
)










(1,021
)Compensatory stock options issued






593















593Net change in unrealized gain on
    available-for-sale
    securities, net of $68 tax liability


















127



127



127Balances, December 31, 2006


11,467,648


$
127,396


$
24,576


$



$
65


$
152,037


$
7,757Issuances of common stock under equity incentive plans, net of
    tax benefits


55,363



611















611Net Income










8,538











8,538



8,538Restricted stock awards activity (Note 15)


3,555



222















222Stock issued in connection with acquisition


5,744,197



124,423















124,423Cash Dividends ($0.15 per share)










(2,405
)










(2,405
)Compensatory stock options issued






498















498Net change in unrealized gain on
    available-for-sale






















securities, net of $22 tax liability


















63



63



63Balances, December 31, 2007


17,270,763


$
253,150


$
30,709


$



$
128


$
283,987


$
8,601    38




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005
  2007


2006


2005($ in thousands)CASH FLOWS PROVIDED BY OPERATING ACTIVITIESNet Income

$
8,538


$
7,630


$
13,872Adjustments to reconcile net income to net cash provided by
    operating activities:Provisions for loan losses, unfunded commitments andforeclosed real estate and other foreclosed assets


17,654



6,230



2,401Depreciation and amortization


6,992



3,392



2,498Deferred income taxes


4,287



1,146



1,364Compensatory stock options and restricted stock expense


720



675



138Loss on write-down or impairment of premises


219



507



(Gain)/loss on sale of other premises and equipment, investmentsand foreclosed real estate and other foreclosed assets


(639
)


(66
)


108Federal Home Loan Bank stock dividends










(22
)Originations of loans held for sale


(159,754
)


(82,938
)


(52,993
)Proceeds from loans sold


160,567



83,420



50,895Changes in assets and liabilities:Accrued interest receivable


(368
)


(419
)


(449
)Bank owned life insurance


(1,007
)


(533
)


580Other assets


(8,149
)


(2,520
)


757Accrued interest payable


661



2,106



754Other liabilities


(831
)


2,069



(1,084
)NET CASH PROVIDED BY OPERATING ACTIVITIES


28,890



20,699



18,819CASH FLOWS USED IN INVESTING ACTIVITIESSecurities
    available-for-sale:Maturities, calls, sales and principal payments


32,882



10,827



8,808Purchases


(29,872
)


(2,878
)


(12,156
)Cash acquired in merger, net of cash consideration paid


292



17,858



Proceeds from sale of bankcard portfolio










5,075Net increase in loans


(214,252
)


(119,208
)


(48,276
)Death benefit proceeds on life insurance contracts










1,345Purchases of premises and equipment


(7,984
)


(9,493
)


(2,052
)Proceeds from sale of premises and equipment


708



860



1,116Proceeds from foreclosed real estate and other foreclosed assets


1,791



2,026



4,450Purchase of trust preferred securities


(619
)


(217
)


Other expenses related to foreclosed real estate and other
    foreclosed assets










(225
)NET CASH USED IN INVESTING ACTIVITIES


(217,054
)


(100,225
)


(41,915
)CASH FLOWS PROVIDED BY FINANCING ACTIVITIESNet increase in deposits


22,102



50,595



2,632Proceeds from Federal Home Loan Bank advances


495,000



130,000



167,050Repayments of Federal Home Loan Bank advances and other
    borrowing activity


(356,403
)


(106,037
)


(126,136
)Proceeds from issuances of common stock under equity incentive
    plans


611



2,557



2,277Proceeds from issuance of junior subordinated debt


20,619



7,217



Payment of cash dividend


(2,405
)


(1,021
)


NET CASH PROVIDED BY FINANCING ACTIVITIES


179,524



83,311



45,823NET CHANGE IN CASH AND CASH EQUIVALENTS


(8,640
)


3,785



22,727Cash and cash equivalents, beginning of year

$
55,729


$
51,944


$
29,217Cash and cash equivalents, end of year

$
47,089


$
55,729


$
51,944Supplemental Disclosures:Cash paid during the period for:Interest

$
49,542


$
31,461


$
17,579Income taxes

$
11,301


$
5,026


$
1,885Non-cash Investing and Financing Activities:Foreclosed real estate acquired in settlement of loans

$
2,134


$
701


$
2,256Fair value of assets aquired

$
546,000


$
229,972


$
Stock-based consideration issued for acquisition

$
(124,423
)

$
(20,593
)

$
Liabilities assumed in acquisition

$
390,384


$
190,418


$
    39




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
  Note 1.
    Business
    and Summary of Significant Accounting Policies  Nature
    of business:
    Basis
    of Financial Statement Presentation:
    Basis
    of consolidation:
    Cash
    and cash equivalents:
    Securities:
  available-for-sale available-for-sale available-for-sale available-for-sale
  available-for-sale
  Federal
    Home Loan Bank stock:
   40




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Loans
    held for sale:
    Loans:
        Income
    recognition on impaired loans:
    Allowance
    for loan losses and reserve for unfunded
    commitments:
       41




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
        Foreclosed
    real estate and other foreclosed assets:
    Premises
    and equipment:
    Accounting for the Impairment or
    Disposal of Long-Lived Assets
  Goodwill
    and intangible assets:
   42




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Income
    taxes:
  and/or
  Earnings
    per share:
    Stock-based
    compensation:
  Share-Based Payment, Accounting for
    Stock-Based Compensation. Accounting for Stock Issued to Employees, Statement of Cash Flows.
  Comprehensive
    income:
  available-for-sale
  available-for-sale
  Year Ended December 31,2007


2006


2005($ in thousands)Unrealized holding gains (losses) on
    available-for-sale
    securities

$
41


$
182


$
(436
)Reclassification adjustments for losses included in income


44



13



25Net unrealized gains (losses)

$
85


$
195


$
(411
)Tax benefit (liability)


(22
)


(68
)


143Net change in unrealized loss on
    available-for-sale
    securities

$
63


$
127


$
(268
)  43




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Other
    off-balance sheet instruments:
    month-to-month
  Bank
    owned life insurance:
    Transfer
    of financial assets:
    Significant
    group concentrations of credit risk:
    Advertising:
    Estimates:
   44




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Reclassifications:
    Note 2.
    Recently
    Issued Accounting Pronouncements  Accounting for Uncertainty in Income Taxes  An
    Interpretation of FASB Statement No. 109
  Accounting for Certain Hybrid
    Instruments Accounting for
    Derivative Instruments and Hedging Activities
  Accounting for Servicing of Financial
    Assets  an amendment of FASB Statement
    No. 140 Accounting for Transfers and
    Servicing of Financial Assets and Extinguishments of
    Liabilities
  Business Combinations Noncontrolling Interest in Consolidated Financial
    Statements ®
  The
    Fair Value Option for Financial Assets and
    Liabilities  Including an amendment of FASB Statement
    No. 115.
 45




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Fair Value Measurements
  06-4, Accounting for Deferred Compensation and Postretirement
    Benefit Aspects of Endorsement Split-Dollar Life Insurance
    Arrangements
  06-10, Accounting for Collateral Assignment Split-Dollar Life
    Insurance Arrangements 06-10 Employers Accounting for Postretirement
    Benefits Other Than Pensions Omnibus Opinion
     1967
  Note 3.
    Business
    Combinations  Far
    West Bancorporation
     46




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    ($ in thousands)Assets acquired:Cash and cash equivalents

$
31,485Securities


30,217Loans, net of allowance for loan losses


341,904Goodwill


94,779Core deposit intangible


12,916Premises and equipment, net


13,241Other assets


21,458Total assets

$
546,000Liabilities assumed:Deposits


383,386Other liabilities


6,998Total liabilities

$
390,384Net assets acquired

$
155,616    47




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    For
    the year ended December 31, 2007
  Pro Forma


Pro FormaAWBC


FWBC


Adjustments


Combined($ in thousands, except per share amounts)Net interest income

$
84,089


$
8,718


$
(257
)(a)

$
92,550Provision for loan losses


17,341



2,005







19,346Non-interest income


16,097



2,413







18,510Non-interest expense


70,548



8,099



(49
)(b)


78,598Income before provision for income tax


12,297



1,027



(208
)


13,116Provision for income taxes


3,759



387



(73
)(c)


4,073Net Income

$
8,538


$
640


$
(135
)

$
9,043Basic earnings per share

$
0.54










$
0.53Diluted earnings per share

$
0.54










$
0.52Basic weighted average shares outstanding


15,766,041











17,182,418Diluted weighted average shares outstanding


15,863,583











17,279,960     (a)
    
    Amount represents amortization of purchase adjustments and
    interest expense on junior subordinated debt issuance.(b)
    
    Amount represents amortization of intangibles.(c)
    
    Income tax effect of pro forma adjustments. 48




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
   For
    the year ended December 31, 2006
  Pro Forma


Pro FormaAWBC


FWBC


Adjustments


Combined($ in thousands, except per share amounts)Net interest income

$
60,286


$
32,351


$
(1,277
)(a)

$
91,360Provision for loan losses


5,376



1,506







6,882Non-interest income


9,275



7,884







17,159Non-interest expense


52,198



20,385



3,000
(b)


75,583Income before provision for income tax


11,987



18,344



(4,277
)


26,054Provision for income taxes


4,357



6,700



(1,497
)(c)


9,560Net Income

$
7,630


$
11,644


$
(2,780
)

$
16,494Basic earnings per share

$
0.68










$
0.97Diluted earnings per share

$
0.67










$
0.96Basic weighted average shares outstanding


11,182,526











16,926,723Diluted weighted average shares outstanding


11,354,654











17,098,851     (a)
    
    Amount represents amortization of purchase adjustments and
    interest expense on junior subordinated debt issuance.(b)
    
    Amount represents amortization of intangibles.(c)
    
    Income tax effect of pro forma adjustments.  Columbia
    Trust Bancorp
     49




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    ($ in thousands)Assets acquired:Cash and cash equivalents

$
36,820Securities


15,937Loans, net of allowance for loan losses


143,444Goodwill


21,023Other intangibles


6,097Premises and equipment, net


3,022Other assets


3,629Total assets

$
229,972Liabilities assumed:Deposits


175,914FHLB advances and other borrowings


10,566Junior subordinated debt


3,093Other liabilities


845Total liabilities

$
190,418Net assets acquired

$
39,554    50




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    For
    the year ended December 31, 2006
  Pro forma


Pro formaAWBC


CTB


Adjustments


Combined(Unaudited, $ in thousands, except per share amounts)Net interest income

$
60,286


$
1,411


$
(307
)(a)

$
61,390Provision for loan losses


5,376



1,126







6,502Non-interest income


9,275



(196
)






9,079Non-interest expense


52,198



2,192



97
(b)


54,487Income before provision for income tax


11,987



(2,103
)


(404
)


9,480Provision for income taxes


4,357



(779
)


(143
)(c)


3,435Net Income

$
7,630


$
(1,324
)

$
(261
)

$
6,045Basic earnings per share

$
0.68










$
0.53Diluted earnings per share

$
0.67










$
0.53Basic weighted average shares outstanding


11,182,526











11,328,650Diluted weighted average shares outstanding


11,354,654











11,512,467     (a)
    
    Amount represents amortization of purchase adjustments and
    interest expense on junior subordinated debt issuance.(b)
    
    Amount represents amortization of intangibles.(c)
    
    Income tax effect of proforma adjustments. 51




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
   For
    the year ended December 31, 2005
  Pro forma


Pro formaAWBC


CTB


Adjustments


Combined(Unaudited, $ in thousands, except per share amounts)Net interest income

$
53,987


$
8,227


$
(658
)(a)

$
61,556Provision for loan losses


2,092



415







2,507Non-interest income


8,383



772







9,155Non-interest expense


41,408



7,010



924
(b)


49,342Income before provision for income tax


18,870



1,574



(1,582
)


18,862Provision for income taxes


4,998



488



(562
)(c)


4,924Net Income

$
13,872


$
1,086


$
(1,020
)

$
13,938Basic earnings per share

$
1.33










$
1.25Diluted earnings per share

$
1.31










$
1.22Basic weighted average shares outstanding


10,407,180











11,129,536Diluted weighted average shares outstanding


10,593,903











11,384,561     (a)
    
    Amount represents amortization of purchase adjustments and
    interest expense on junior subordinated debt issuance.(b)
    
    Amount represents amortization of intangibles.(c)
    
    Income tax effect of proforma adjustments.  Note 4.
    Cash and
    Cash Equivalents   52




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Note 5.
    Securities    Gross


GrossAmortized


Unrealized


Unrealized


FairDecember 31, 2007

Cost


Gains


Losses


Value($ in thousands)Obligations of federal government agencies

$
17,397


$
80


$
31


$
17,446Obligations of states, municipalities and political subdivisions


19,560



96



71



19,585Mortgage-backed securities


26,021



340



1



26,360Corporate securities


1,500







13



1,487Other securities


2,310







203



2,107Total

$
66,788


$
516


$
319


$
66,985   Gross


GrossAmortized


Unrealized


Unrealized


FairDecember 31, 2006

Cost


Gains


Losses


Value($ in thousands)Obligations of federal government agencies


11,927



17



87


$
11,857Obligations of states, municipalities


9,016



90



44



9,062and political subdivisions Mortgage-backed securities


14,680



94



35



14,739Corporate securities


1,498







17



1,481Other securities


2,297



82







2,379Total

$
39,418


$
283


$
183


$
39,518     Less than 12 Months


12 Months or Longer


TotalFair


Unrealized


Fair


Unrealized


Fair


UnrealizedDecember 31, 2007

Value


Losses


Value


Losses


Value


Losses($ in thousands)Obligations of federal government agencies

$



$



$
4,936


$
31


$
4,936


$
31Obligations of states, municipalities and political subdivisions


6,753



33



1,060



38



7,813



71Mortgage-backed securities


51







226



1



277



1Corporate securities










1,487



13



1,487



13Other securities


779



203











779



203Total

$
7,583


$
236


$
7,709


$
83


$
15,292


$
319   53




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Less than 12 Months


12 Months or Longer


TotalFair


Unrealized


Fair


Unrealized


Fair


UnrealizedDecember 31, 2006

Value


Losses


Value


Losses


Value


Losses($ in thousands)Obligations of federal government agencies

$
1,318


$
14


$
4,206


$
73


$
5,524


$
87Obligations of states, municipalitiesand political subdivisions


3,160



13



1,849



31



5,009



44Mortgage-backed securities


1,666



6



1,946



29



3,612



35Corporate securities










1,481



17



1,481



17Total

$
6,144


$
33


$
9,482


$
150


$
15,626


$
183           Amortized


FairCost


Value($ in thousands)Due in one year or less

$
14,589


$
14,593Due from one to five years


10,916



10,992Due from five to ten years


4,852



4,863Due after ten years


9,115



8,882Mortgage-backed securities


26,021



26,360Other non-maturity securities


1,295



1,295Total

$
66,788


$
66,985    54




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Note 6.
    Loans,
    Allowance for Loan Losses and Reserve for Unfunded
    Commitments    2007


2006($ in thousands)Commercial real estate

$
580,627


$
529,699Construction, land development and other land


523,913



230,313Commercial and industrial


321,638



200,217Agricultural


157,196



155,433Residential real estate


153,043



86,371Installment and other


31,455



18,853Total loans


1,767,872



1,220,886Allowance for loan losses


(25,258
)


(15,136
)Deferred loan fees, net of deferred costs


(3,776
)


(1,231
)Net loans

$
1,738,838


$
1,204,519       2007


2006


2005($ in thousands)Balance, beginning of year

$
15,136


$
13,895


$
18,282Provision for loan losses


17,341



5,376



2,092Allowance related to acquired loans


7,529



2,068



Loans charged-off


(15,270
)


(7,021
)


(6,925
)Recoveries


522



818



446Balance, end of year

$
25,258


$
15,136


$
13,895     2007


2006


2005($ in thousands)Balance, beginning of year

$
881


$
466


$
193Reserve related to acquired unfunded commitments


257







Provision for unfunded commitments


236



415



273Balance, end of year

$
1,374


$
881


$
466    55




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    2007


2006($ in thousands)Impaired loans:Impaired loans with specific allowance for loan losses

$



$
6,264Impaired loans without a specific allowance for loan losses


34,343



2,255Total impaired loans

$
34,343


$
8,519Impaired loans allowance for loan losses

$



$
1,145Average impaired loans

$
14,778


$
8,031     Note 7.
    Premises
    and Equipment    Estimated2007


2006


Useful Life($ in thousands)Premises

$
28,623


$
21,878


5-39 YearsFurniture, fixtures, and equipment


17,948



13,123


3-20 YearsLeasehold improvements


9,829



4,976


5-39 Years56,400



39,977Less accumulated depreciation


(16,688
)


(13,467
)39,712



26,510Land


7,714



3,974Premises and equipment, net

$
47,426


$
30,484      56




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Note 8.
    Goodwill
    and Intangible Assets    IntangibleGoodwill


Assets($ in thousands)Balance, December 31, 2005

$
12,050


$
2,391Additions


21,023



6,097Amortization






(982
)Balance, December 31, 2006

$
33,073


$
7,506Additions


94,779



12,916Amortization






(3,480
)Balance, December 31, 2007

$
127,852


$
16,942     ExpectedAmortization($ in thousands)2008

$
3,4752009


2,8642010


2,4312011


2,0932012


1,809   Note 9.
    Bank
    Owned Life Insurance      Note 10.
    Income
    taxes    Years Ended December 31,2007


2006


2005($ in thousands)Current expense

$
8,046


$
5,503


$
3,634Deferred tax expense (benefit)


(4,287
)


(1,146
)


1,364Income tax expense

$
3,759


$
4,357


$
4,998  57




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Years Ended December 31,2007


2006


2005($ in thousands)Income tax at statutory rate

$
4,304


$
4,196


$
6,604Effect of tax-exempt interest income


(368
)


(222
)


(203
)Effect of bank owned life insurance


(353
)


(187
)


(797
)Effect of tax credits


53



457



(280
)Other


123



113



(326
)Income tax expense

$
3,759


$
4,357


$
4,998     Years Ended December 31,2007


2006($ in thousands)Deferred tax assets:Allowance for loan losses and reserve for unfunded commitments

$
9,060


$
5,531Deferred compensation expense


3,278



1,158Acquired intangible asset


1,223



Deferred loan fees


1,058



Interest on nonaccrual loans


719



408Other


695



1,444Total deferred tax assets


16,033



8,541Deferred tax liabilities:Intangible assets


5,449



1,905Depreciation


3,666



1,614FHLB stock dividend income


909



608Deferred loan fees






269Other


884



1,048Total deferred tax liabilities


10,908



5,444Net deferred tax assets

$
5,125


$
3,097      58




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Note 11.
    Federal
    Home Loan Bank advances and other borrowings:    December 31,2007


2006Weighted





WeightedAverage





AverageMaturity Date

Amount


Interest Rate


Amount


Interest Rate($ in thousands)2007









$
76,207



5.44
%2008

$
174,384



4.74
%


25,884



5.03
%2009


33,068



5.12
%


3,068



3.60
%2010














2011














2012


600



3.83
%


600



3.83
%Total

$
208,052



4.80
%

$
105,759



5.28
%     December 31,2007


2006($ in thousands)Maximum amount of outstanding FHLB advances at any month-end

$
217,540


$
144,429Average amount of outstanding FHLB advances during the year

$
129,524


$
95,580        59




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Note 12.
    Junior
    Subordinated Debentures    Outstanding





Effective


NextTrust Name

Issue Date

Amount


Rate


Rate


Call Date

Maturity Date($ in thousands)AmericanWest Statutory Trust I

September 2002

$
10,310



Floating(1
)


8.26
%

March 2008

September 2032Columbia Trust Statutory Trust I

June 2003

$
3,093



Floating(2
)


7.96
%

June 2008

June 2033AmericanWest Capital Trust II

March 2006

$
7,217



6.76%(3
)


6.76
%

March 2011

March 2036AmericanWest Capital Trust III

March 2007

$
20,619



6.53%(4
)


6.53
%

March 2012

June 2037     (1)
    
    Rate based on LIBOR plus 3.40%, adjusted quarterly.(2)
    
    Rate based on LIBOR plus 3.10%, adjusted quarterly.(3)
    
    Rate fixed for 5 years from issuance, then adjusted
    quarterly thereafter based on LIBOR plus 1.50%.(4)
    
    Rate fixed for 5 years from issuance, then adjusted
    quarterly thereafter based on LIBOR plus 1.63%.  Consolidation of Variable Interest Entities
    Note 13.
    Time
    Deposit Maturities    ($ in thousands)2008

$
454,2212009


35,0762010


8,6482011


4,4822012


5,665Thereafter


320Total

$
508,412  60




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Note 14.
    Common
    Stock      Note 15.
    Stock-Based
    Compensation  Stock
    Options
      2007


2006


2005Weighted





Weighted





WeightedAverage





Average





AverageExercise





Exercise





ExerciseNumber


Price


Number


Price


Number


PriceOutstanding at beginning of year


444,049


$
16.51



454,136


$
15.96



697,231


$
13.87Granted


64,750



22.57



177,343



19.44



45,293



20.58Assumed through acquisition










160,818



12.00







Exercised


(56,895
)


8.51



(179,932
)


12.40



(222,863
)


10.01Forfeited and expired


(26,510
)


22.32



(168,316
)


18.18



(65,525
)


16.90Outstanding at year end


425,394


$
18.14



444,049


$
16.51



454,136


$
15.96Exercisable at year end


305,644


$
17.15



293,069


$
15.03



228,946


$
13.30    61




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    WeightedWeighted


AverageAverage


Remaining


AggregateExercise


Contractual


IntrinsicOptions


Price


Life


Value($ in thousand except per share amounts)Outstanding at December 31, 2007


425,394


$
18.14



6.2 years


$
628Exercisable at December 31, 2007


305,644


$
17.15



5.7 years


$
628Outstanding at December 31, 2006


444,049


$
16.51



6.2 years


$
3,422Exercisable at December 31, 2006


293,069


$
15.03



5.5 years


$
2,693     2007


2006


2005Risk free interest rate


4.6
%


4.9
%


4.3
%Expected volatility


30.3
%


27.5
%


24.7
%Expected cash dividends


0.5
%


0.4
%


0.0
%Expected life


6.0 years



5.5 years



7.5 years     Options Outstanding


Options ExercisableWeightedAverage


Weighted





WeightedRemaining


Average





AverageNumber


Contractual


Exercise


Number


ExerciseRange of Exercise Prices

Outstanding


Life


Price


Exercisable


Price$2.59   $5.18


18,023



1.2 years


$
3.76



18,023


$
3.76$5.18   $7.78


11,500



1.4 years


$
6.41



11,500


$
6.41$7.78   $10.37


15,870



2.0 years


$
8.76



15,870


$
8.76$10.37  $12.96


5,047



4.0 years


$
12.20



5,047


$
12.20$12.96  $15.55


30,787



4.3 years


$
15.16



30,787


$
15.16$15.55  $18.14


21,452



6.2 years


$
17.50



18,702


$
17.49$18.14  $20.74


194,315



6.8 years


$
18.73



133,415


$
18.73$20.74  $23.33


91,143



7.0 years


$
21.60



58,993


$
21.42$23.33  $25.92


37,257



8.7 years


$
24.87



13,307


$
25.90Total


425,394











305,644    62




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
        2005( $ in thousands,except per share)Reported net income

$
13,872Add: stock-based compensation expense reported in net income,
    net of tax


25Deduct: total stock-based compensation expense determined under
    fair value based method for all awards, net of tax effects


(676
)Pro forma net income

$
13,221Basic earnings per shareReported earnings per share

$
1.33Stock-based employee compensation, fair value


(0.06
)Pro forma earnings per share

$
1.27Diluted earnings per shareReported diluted earnings per share

$
1.31Stock-based employee compensation, fair value


(0.06
)Pro forma diluted earnings per share

$
1.25   Restricted
    Common Stock Awards
     63




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
      2007


2006


2005Weighted Average





Weighted Average





Weighted AverageRestricted


Grant Date Fair


Restricted


Grant Date Fair


Restricted


Grant Date FairStock


Value


Stock


Value


Stock


ValueUnvested, beginning of year


79,333


$
21.59



56,500


$
21.15






$
Granted


42,705



21.83



48,433



22.05



74,000



20.75Forfeited


(39,150
)


21.90



(25,600
)


21.50



(17,500
)


19.46Vested


(12,117
)


21.29















Unvested, end of year


70,771


$
21.62



79,333


$
21.59



56,500


$
21.15     Note 16.
    Commitments
    and Contingent Liabilities      Capital


OperatingLeases


Leases($ in thousands)2008

$
95


$
3,3042009


95



3,1172010


95



3,0762011






3,0552012






2,997Thereafter






28,367Total minimum amounts due

$
285


$
43,916Less: Amount representing interest


(46
)Present value of net minimum lease payments

$
239    64




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
        2007


2006($ in thousands)Commitments to extend credit

$
533,656


$
343,804Standby letters of credit and financial guarantees written


51,364



21,507Total

$
585,020


$
365,311   case-by-case
        Note 17.
    Restrictions
    on Dividends and Loans   65




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Note 18.
    Employee
    Benefit Plans        Note 19.
    Parent
    Company Only Statements    Condensed
    Statements of Condition
    December 31, 2007 and 2006
  2007


2006($ in thousands)Cash

$
757


$
3,197Investment in Bank subsidiary


323,094



168,682Other assets


1,549



1,016TOTAL ASSETS

$
325,400


$
172,895Junior Subordinated Debt and other liabilities

$
41,413


$
20,858Stockholders equity


283,987



152,037TOTAL LIABILITIES AND STOCKHOLDERS EQUITY

$
325,400


$
172,895  66




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Condensed
    Statements of Income
    Years Ended December 31, 2007, 2006 and 2005
  2007


2006


2005($ in thousands)INCOMEBank subsidiary dividends

$
11,500


$
10,000


$
Other income


81



46



1811,581



10,046



18EXPENSESInterest expense


2,756



1,554



758Other operating expenses


1,462



1,317



8284,218



2,871



1,586INCOME (LOSS) BEFORE PROVISION FOR INCOME TAX AND NET INCOME OF
    SUBSIDIARY, NET OF DIVIDENDS PAID TO PARENT


7,363



7,175



(1,568
)Benefit for income tax


1,319



1,024



530INCOME (LOSS) BEFORE NET INCOME OF SUBSIDIARY, NET OF DIVIDENDS
    PAID TO PARENT


8,682



8,199



(1,038
)Net income (loss) of subsidiary, net of dividends paid to Parent


(144
)


(569
)


14,910NET INCOME

$
8,538


$
7,630


$
13,872  67




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Condensed
    Statements of Cash Flows
    Years Ended December 31, 2007, 2006 and 2005
  2007


2006


2005($ in thousands)CASH FLOWS PROVIDED BY OPERATING ACTIVITIESNet Income

$
8,538


$
7,630


$
13,872Adjustments to reconcile net income to cash provided by (used
    in) operating activities:Net income of subsidiary, net of dividends paid to Parent


144



569



(14,910
)Compensation expense for stock based awards


720



675



138Net change in other assets


20



153



446Net change in other liabilities


(64
)


(175
)


449NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES


9,358



8,852



(5
)CASH FLOWS USED IN INVESTING ACTIVITIESInvestment purchased










(50
)Purchased trust preferred securities


(619
)


(217
)


Cash acquired in merger, net of cash consideration paid


(30,004
)


(17,350
)


NET CASH USED IN INVESTING ACTIVITIES


(30,623
)


(17,567
)


(50
)CASH FLOWS PROVIDED BY FINANCING ACTIVITIESProceeds from issuances of common stock under equity incentive
    plans


611



2,557



2,277Cash dividends paid


(2,405
)


(1,021
)


Proceeds from issuance of junior subordinated debentures


20,619



7,217



NET CASH PROVIDED BY FINANCING ACTIVITIES


18,825



8,753



2,277NET CHANGE IN CASH


(2,440
)


38



2,222CASH, beginning of year


3,197



3,159



937CASH, end of year

$
757


$
3,197


$
3,159  68




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Note 20.
    Related
    Party Transactions  Loans
    to related parties:
    2007


2006


2005($ in thousands)Balance at beginning of year

$
507


$
1,034


$
798New loans or advances


4,119



2,072



1,218Repayments


(1,696
)


(2,241
)


(982
)Other adjustments


12,336



(358
)


Balance at end of year

$
15,266


$
507


$
1,034     Deposits
    from related parties:
    Payments
    to related parties:
   69




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Note 21.
    Fair
    Value of Financial Instruments  Disclosures about Fair Value of
    Financial Instruments
  Carrying


EstimatedAs of December 31, 2007:

Assumptions Used in Estimating Fair Value

Amount


Fair Value($ in thousands)Financial Assets:Cash and due from banks

Equal to carrying value

$
46,591


$
46,591Overnight interest bearing deposits with other banks

Equal to carrying value


498



498Securities

Quoted market prices


66,985



66,985Federal Home Loan Bank Stock

Par value


7,801



7,801Loans, held for sale

Equal to carrying value


11,105



11,105Loans

Fixed-rate loans:  Discounted expected future cash flows,
    variable-rate loans:  equal to carrying value, net of allowance
    for loan losses


1,738,838



1,728,387Financial Liabilities:Deposits

Fixed-rate certificates of deposit:Discounted expected future cash flows All other deposits:  Equal
    to carrying value


1,529,427



1,494,486Federal Home Loan Bank advances and other borrowings

Discounted expected future cash flows


244,663



246,354Junior subordinated debentures

Equal to carrying value


41,239



41,239   70




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Carrying


EstimatedAs of December 31, 2006:

Assumptions Used in Estimating Fair Value

Amount


Fair Value($ in thousands)Financial Assets:Cash and due from banks

Equal to carrying value

$
45,866


$
45,866Overnight interest bearing deposits with other banks

Equal to carrying value


9,863



9,863Securities

Quoted market prices


39,518



39,518Federal Home Loan Bank Stock

Par value


6,319



6,319Loans, held for sale

Equal to carrying value


2,913



2,913Loans

Fixed-rate loans:  Discounted expected future cash flows,
    variable-rate loans:  equal to carrying value, net of allowance
    for loan losses


1,204,519



1,192,676Financial Liabilities:Deposits

Fixed-rate certificates of deposit:Discounted expected future cash flows All other deposits:  Equal
    to carrying value


1,123,939



1,122,768Federal Home Loan Bank advances and other borrowings

Discounted expected future cash flows


106,066



105,775Junior subordinated debentures

Equal to carrying value


20,620



20,620     Note 22.
    Regulatory
    Matters     71




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
    Actual





Adequately Capitalized





Well CapitalizedAmount


Ratio





Amount


Ratio





Amount


Ratio($ in thousands)As of December 31, 2007:Total capital to risk weighted assets:AWBC

$
203,891



10.28
%


3


$
158,742



8.00
%


3



N/A



N/AAWB


202,980



10.24
%


3



158,623



8.00
%


3


$
198,279



10.00
%Tier I capital to risk weighted assets:AWBC


179,065



9.02
%


3



79,371



4.00
%


3



N/A



N/AAWB


178,172



8.99
%


3



79,311



4.00
%


3



118,967



6.00
%Leverage capital, Tier I capital to average assets:AWBC


179,065



9.20
%


3



77,887



4.00
%


3



N/A



N/AAWB


178,300



9.16
%


3



77,829



4.00
%


3



97,286



5.00
%   Actual





Adequately Capitalized





Well CapitalizedAmount


Ratio





Amount


Ratio





Amount


Ratio($ in thousands)As of December 31, 2006:Total capital to risk weighted assets:AWBC

$
147,410



11.16
%


3


$
105,633



8.00
%


3



N/A



N/AAWB


144,121



10.92
%


3



105,573



8.00
%


3


$
131,966



10.00
%Tier I capital to risk weighted assets:AWBC


131,393



9.95
%


3



52,816



4.00
%


3



N/A



N/AAWB


128,104



9.71
%


3



52,786



4.00
%


3



79,180



6.00
%Leverage capital, Tier I capital to average assets:AWBC


131,393



9.83
%


3



53,474



4.00
%


3



N/A



N/AAWB


128,104



9.58
%


3



53,505



4.00
%


3



66,882



5.00
%  72




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Note 23.
    Earnings
    Per Share    2007


2006


2005($ in thousands, except per share)Numerator:Net income

$
8,538


$
7,630


$
13,872Denominator:Weighted-average number of common shares outstanding


15,766,041



11,182,526



10,407,180Incremental shares assumed for stock options


97,542



172,128



186,723Total


15,863,583



11,354,654



10,593,903Basic earnings per common share

$
0.54


$
0.68


$
1.33Diluted earnings per common share

$
0.54


$
0.67


$
1.31Antidilutive options not included in diluted earnings per share


159,986



72,375



6,074   Note 24.
    Other
    Non-interest Expenses    2007


2006


2005($ in thousands)Bankcard and Debit Card

$
1,318


$
511


$
383Supplies


1,041



1,118



883Advertising


972



1,081



669Other


8,597



8,124



7,963Total

$
11,928


$
10,834


$
9,898  73




---



##### Table of Contents



AMERICANWEST
    BANCORPORATION
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS 
    (Continued)
  Note 25.
    Subsequent
    Events    QUARTERLY
    UNAUDITED FINANCIAL DATA
    CONDENSED CONSOLIDATED STATEMENTS OF QUARTERLY INCOME
  Quarter EndedDecember 31,


September 30,


June 30,


March 31,Statement of Income:

2007


2007


2007


2007($ in thousands, except per share)Interest income

$
36,325


$
37,351


$
35,754


$
24,862Interest expense


13,461



13,861



12,753



10,128Net Interest Income


22,864



23,490



23,001



14,734Provision for loan losses


14,605



1,231



1,538



(33
)Net interest income after provision for loan losses


8,259



22,259



21,463



14,767Non-interest income


4,555



4,450



4,687



2,405Non-interest expense


18,777



18,795



19,176



13,800Income before provision for income tax


(5,963
)


7,914



6,974



3,372Provision for income tax


(2,426
)


2,565



2,433



1,187Net income

$
(3,537
)

$
5,349


$
4,541


$
2,185Basic earnings per common share

$
(0.21
)

$
0.31


$
0.26


$
0.19Diluted earnings per common share

$
(0.20
)

$
0.31


$
0.26


$
0.19Basic weighted average shares outstanding


17,197,012



17,194,189



17,177,214



11,412,991Diluted weighted average shares outstanding


17,276,477



17,268,007



17,290,389



11,540,998   December 31,


September 30,


June 30,


March 31,Statement of Income:

2006


2006


2006


2006Interest income

$
25,481


$
24,985


$
24,021


$
19,366Interest expense


9,642



9,274



8,508



6,143Net Interest Income


15,839



15,711



15,513



13,223Provision for loan losses


459



3,629



622



666Net interest income after provision for loan losses


15,380



12,082



14,891



12,557Non-interest income


2,565



2,764



2,190



1,756Non-interest expense


14,351



13,297



12,766



11,784Income before provision for income tax


3,594



1,549



4,315



2,529Provision for income tax


1,343



587



1,547



880Net income

$
2,251


$
962


$
2,768


$
1,649Basic earnings per common share

$
0.20


$
0.08


$
0.24


$
0.15Diluted earnings per common share

$
0.20


$
0.08


$
0.24


$
0.15Basic weighted average shares outstanding


11,383,248



11,373,559



11,317,386



10,641,585Diluted weighted average shares outstanding


11,531,166



11,530,546



11,511,564



10,880,915  74




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##### Table of Contents



Item 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure.    Item 9A.
    Controls
    and Procedures.  Section 13a-15(e)
    Managements
    Annual Report on Internal Control Over Financial
    Reporting
  Rule 13a-15(f)
         75




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##### Table of Contents



Item 9B.
    Other
    Information    PART III  Item 10.
    Directors,
    Executive Officers and Corporate Governance.    
    Election of Directors;
    Board Committees and Meetings;
    Corporate Governance;
    Compliance with Section 16(a) of the Exchange
    Act;
    Executive Officers Who are Not Directors; and
    Code of Ethics.  Form 10-K.
  Item 11.
    Executive
    Compensation.    
    Compensation Discussion and Analysis;
    Executive Compensation; and
    Directors Compensation.  Form 10-K.
  Item 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters.    
    Security Ownership of Certain Beneficial Owners and
    Management.    Form 10-K.
 76




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##### Table of Contents



Item 13.
    Certain
    Relationships and Related Transactions, and Director
    Independence.    
    Related Party Transactions and Business
    Relationships.  Form 10-K.
  Item 14.
    Principal
    Accountant Fees and Services.    
    Independent Registered Public Accounting Firm.  Form 10-K.
 PART IV  Item 15.
    Exhibits
    and Financial Statement Schedules.          EXHIBIT INDEX
  2
.1

Agreement and Plan of Merger, dated as of October 18, 2006,
    by and between AmericanWest and Far West (included as
    Appendix A to the joint proxy statement/prospectus in
    Part I of the Registration Statement on
    Form S-4
    (File
    No. 333-139311
    / Film No. 07611403)).3
.1

Amended and Restated Articles of Incorporation of AmericanWest
    (filed as Exhibit 3.1 to the
    Form 10-Q
    filed on May 9, 2007, and incorporated herein by this
    reference).3
.2

Amended and Restated Bylaws of AmericanWest (filed as
    Exhibit 3.2 to the
    Form 10-Q
    filed on May 9, 2007, and incorporated herein by this
    reference).4
.1

Specimen certificate for shares of Common Stock (filed as
    Exhibit 4.1 to the
    Form S-4/A,
    filed on January 23, 2006 and incorporated herein by
    reference).4
.2

Form of Voting Agreement, dated as of October 18, 2006, by
    and among AmericanWest Bancorporation and certain stockholders
    of Far West Bancorporation (filed as Exhibit 10.1 to the
    Form 8-K
    filed on October 19, 2006, and incorporated herein by this
    reference).4
.3

Indenture dated as of September 26, 2002, between
    AmericanWest Bancorporation, as Issuer, and State Street Bank
    and Trust Company of Connecticut, National Association, as
    Trustee, for the issuance of Floating Rate Junior Subordinated
    Deferrable Interest Debentures due 2032 is incorporated by
    reference to Exhibit 10.5 to the
    Form 10-K
    (File
    No. 000-18561)
    filed March 26, 2003.4
.4

Indenture dated as of March 22, 2007, by and between
    AmericanWest Bancorporation and Wilmington Trust Company,
    as Trustee, for the issuance of Fixed/Floating Junior
    Subordinated Deferrable Interest Debentures due 2037(filed as
    Exhibit 10.6 to the
    Form 10-Q
    filed on May 9, 2007, and incorporated herein by this
    reference).10
.1

Amendment No. 3 to Employment Agreement with R. Blair
    Reynolds dated July 3, 2007 (filed as exhibit 10.1 to
    the
    Form 10-Q
    for the quarter ended June 30, 2007, filed on
    August 8, 2007).* 77




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##### Table of Contents



10
.2

Employment Agreement, dated as of October 18, 2006, by and
    between AmericanWest Bank and H. Don Norton (filed as
    Exhibit 10.2 to the
    Form 8-K
    filed on October 19, 2006, and incorporated herein by this
    reference).*10
.3

Employment Agreement dated as of September 20, 2004 with
    Robert M. Daugherty is incorporated by reference to
    Exhibit 10.14 to the
    Form 10-Q
    (File
    No. 000-18561)
    filed November 2, 2004.*10
.4

Employment Agreement dated as of January 25, 2005 with R.
    Blair Reynolds is incorporated by reference to
    Exhibit 10.18 to the
    Form 10-Q
    (File
    No. 000-18561)
    filed August 9, 2005.*10
.5

Employment Agreement dated as of January 28, 2005 with Rick
    Shamberger is incorporated by reference to Exhibit 10.19 to
    the
    Form 10-Q
    (File
    No. 000-18561)
    filed August 9, 2005.*10
.6

Employment Agreement dated as of January 28, 2005 with
    Nicole Sherman is incorporated by reference to
    Exhibit 10.20 to the
    Form 10-Q
    (File
    No. 000-18561)
    filed August 9, 2005.*10
.7

Grant of Performance Shares dated as of June 6, 2005 to R.
    Blair Reynolds, Rick Shamberger and Nicole Sherman are
    incorporated by reference to the form of such agreement for
    Mr. Reynolds, filed as Exhibit 10.23 to the
    Form 10-Q
    (File
    No. 000-18561)
    filed August 9, 2005.*10
.8

Employment Agreement dated as of September 18, 2006 with
    Patrick J. Rusnak is incorporated by reference to
    Exhibit 99.1 to the
    Form 8-K
    filed on September 19, 2006.*10
.9

Restricted Stock Unit Agreement dated effective
    September 26, 2006 between the Company and Patrick J.
    Rusnak is incorporated by reference to Exhibit 10.25 to the
    Form 10-K
    filed on March 15, 2007.*10
.10

Amendment to Nonqualified Stock Option Agreement dated effective
    September 20, 2004 between AmericanWest Bancorporation and
    Robert M. Daugherty is incorporated by reference to
    Exhibit 99.1 to the
    Form 8-K
    filed on December 1, 2006.*10
.11

Restricted Stock Grant Agreement dated November 28, 2006
    between AmericanWest Bancorporation and Robert M. Daugherty is
    incorporated by reference to Exhibit 99.2 to the
    Form 8-K
    filed on December 1, 2006.*10
.12

Amendment No. 1 to Employment Agreement with Robert M.
    Daugherty incorporated by reference to Exhibit 99.1 to the
    registrants current report on
    Form 8-K/A
    filed January 5, 2007 (File
    No. 000-18561).*10
.13

Amendment No. 1 to Employment Agreement with Rick
    Shamberger incorporated by reference to Exhibit 99.2 to the
    Form 8-K/A
    filed January 5, 2007 (File
    No. 000-18561).*10
.14

Amendment No. 1 to Employment Agreement with Nicole Sherman
    incorporated by reference to Exhibit 99.5 to the
    Form 8-K/A
    filed January 5, 2007 (File
    No. 000-18561).*10
.15

2006 Equity Incentive Plan incorporated herein by reference to
    Exhibit A to the Definitive Proxy Statement filed
    March 27, 2006.*10
.16

Amendment No. 1 to Employee Agreement with R. Blair
    Reynolds dated effective December 15, 2005 incorporated by
    reference to Exhibit 10.36 to the
    Form 10-K
    filed March 15, 2007.*10
.17

Amendment No. 2 to Employment Agreement with R. Blair
    Reynolds incorporated by reference to Exhibit 99.6 to the
    Form 8-K/A
    filed January 5, 2007 (File
    No. 000-18561).*21
.1

Subsidiaries of Registrant.+23
.1

Consent of Moss Adams LLP, Independent Registered Public
    Accounting Firm.+31(a)


Certification of the Chief Executive Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.+31(b)


Certification of the Chief Financial Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.+32(a)


Certification of the Chief Executive Officer pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.+32(b)


Certification of the Chief Financial Officer pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.+     *
    
    Denotes executive compensation plan or arrangement.+
    
    Denotes items filed herewith. 78




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##### Table of Contents



SIGNATURES      By:
    /s/  Robert
    M. Daugherty        Principal Executive Officer
  By:
    /s/  
    Robert M. Daugherty      Principal Financial and Accounting Officer
  By:
    /s/  
    Patrick J. Rusnak      Remaining Directors
  By:
    /s/  
    Douglas K. Anderson  
 79




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##### Table of Contents



By:
    /s/  
    Ivan T. Call  
  By:
    /s/  
    Kay C. Carnes  
  By:
    /s/  
    Craig D. Eerkes  
  By
    /s/  H.
    Don Norton  
  By
    /s/  Donald
    H. Swartz, II  
  By:  
 80